A federal judge in New York recently approved a $99 million settlement in favor of Novartis pharmaceutical sales representatives. More than 7,000 employees will receive a portion of the settlement to recover lost wages from unpaid overtime, while the rest will go toward attorney's fees and penalties.

Questions have recently been raised regarding the correct classification for pharmaceutical sales representatives. A number of large corporations have been classifying them as outside sales or administrative employees to exempt them from rights to overtime payment under the Fair Labor Standards Act (FLSA).

Earlier this year, judges settled a similar case, saying the employees were exempt as administrative employees. If sales representatives are, in fact, not considered outside sales employees under the FLSA, more pharmaceutical companies could be receiving notifications of employee lawsuits to reclaim lost wages.

To qualify for an exemption, employees' job duties must meet specific requirements outlined by the Department of Labor. Employers who are uncertain about those measures might consider hiring an external human resources team that can handle payroll processing and make sure each position is correctly classified. 

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